Silver Price Analysis: XAG/USD reaches two-week highs, approaches the 50-day EMA

Silver rises over 1.50%, benefitting from Fed’s dovish stance, and US bond yields fall.
As investors priced in a pause in Fed’s tightening cycle, the 10-year bond yield and the US Dollar tumbled.
Technical outlook shows a sideways trend as XAG/USD battles to stay below 20 and 50-day EMAs; Support areas and potential resistance levels are highlighted.

Christian Borjon Valencia FXStreet

Silver price advanced steadily by more than 1.50% on Thursday, sponsored by several reasons. Firstly, dovish remarks by Federal Reserve (Fed) officials tumbled US bond yields in the last 48 hrs. Relief of the US debt-ceiling saga, advancing to the US Senate, and weakening in manufactury activity, were the final nails in the coffin for the greenback. Therefore, the XAG/USD is exchanging hands at $23.85 after diving as low as $23.28.

The US 10-year Treasury bond yield drops four basis points (bps) from around 3.64% to 3.60%, a tailwind for the non-yielding metal. Consequently, the US Dollar Index (DXY) plummeted more than 0.50%, at 103.573, as investors began to price in Fed’s first pause after hiking 500 bps.

XAG/USD Price Analysis: Technical outlook

XAG/USD remains sideways after an ongoing correction lifted Silver from around two-month lows of $22.68. Even though the 200-day Exponential Moving Average (EMA) price level cushioned Silver’s fall, downside risks persist as XAG/USD battles to stay below the 20 and 50-day EMAs, at $23.80 and $23.93, respectively.

In that outcome, the following support areas would be the 100—day EMA at $23.47. A breach of the latter and XAG/USD could dive below the $23.00 figure to re-test the 200-day EMA at $22.85, briefly tested on May 25 and 26.

Conversely, XAG/USD’s first resistance would be the 50-day EMA at $23.93. Once surrendered, the $24.00 mark is up for grabs, followed by a crucial April 25 swing low test, which turned resistance at $24.49.

XAG/USD Price Action – Daily chart

XAG/USD

Overview
Today last price	23.88
Today Daily Change	0.37
Today Daily Change %	1.57
Today daily open	23.51

Trends
Daily SMA20	24.07
Daily SMA50	24.42
Daily SMA100	23.35
Daily SMA200	22.08

Levels
Previous Daily High	23.62
Previous Daily Low	23.1
Previous Weekly High	23.92
Previous Weekly Low	22.68
Previous Monthly High	26.14
Previous Monthly Low	22.68
Daily Fibonacci 38.2%	23.42
Daily Fibonacci 61.8%	23.3
Daily Pivot Point S1	23.2
Daily Pivot Point S2	22.89
Daily Pivot Point S3	22.68
Daily Pivot Point R1	23.72
Daily Pivot Point R2	23.93
Daily Pivot Point R3	24.24

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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